This research was conducted in Oromia regional State Finfinne surrounding special zone, Ethiopia. The major purpose of the study were to assess the organizational capacities of educational offices in terms of organizational structure, leadership and management, human resource, financial resources, , internal and external infrastructural capacity as well as the extent to which enabling environment in terms of legal political administrative and stakeholder participation is available. The research methodology employed was a descriptive survey method.The main sources of information for this study were educational officials and experts of the sample education offices, selected key informants from woreda as well as official documents (policy, strategies, programs, and statistical reports). Data were collected from woreda education offices through a questionnaire, interviews, document analysis and checklists. A total of 114 questionnaires were distributed to educational officials and experts working in five education offices and four schools from 8 woreda education offices in Finfinne surrounding zone, and from these 100 questionnaires were completed and returned. Moreover, the opinions gathered through interviews that were conducted with key educational officials of the woreda levels were also used as major sources of information. The findings of the study revealed that the overall condition of the education office was challenging and needs strong improvement. Organizational structure, leadership and management, financial resources, human resources, were the wereas in which needs improvement. Conversely, policies and legal environment, political environment, as well as stake-holder participation were among the wereas in which need less improvement. More specifically, constraints of internal and external infrastructure and its utilization, lack of conducive work condition, lack of strong leadership and commitment, high turnover of educational officials and experts and lack of clear organizational structure were identified as factors responsible for the ineffectiveness of implementation of decentralization of educational management. It is therefore, to make decentralization of educational management meaningful it is recommended that efforts has to be made to fulfill the internal and external organizational capacity with the availability of resources and proper utilization, strong political leadership and commitment, clear organizational structure , creating enabling work environments were most prominent factor. Keywords: Decentralization, Organizational Capacity, Leadership, Management